Coal cash to poll campaigns? How ₹2,742 crore scam funds allegedly powered I-PAC’s election operations

The searches were conducted as part of a money laundering probe connected to an alleged multi-crore coal theft racket operating in the state.

Coal theft syndicate under scanner

According to FIRs registered by the CBI and ED, the case centres on large-scale illegal mining and theft of coal from the leasehold areas of Eastern Coalfields Limited (ECL). 

Investigators allege that the operation was orchestrated by a statewide syndicate led by Anup Majee, also known as Lala, in “active connivance” with state officials, local police, CISF personnel, private entities and political influencers.

The syndicate allegedly extracted coal illegally and sold it to factories across Bankura, Bardhaman and Purulia districts. 

Cash generated from these sales was funnelled to a central collection point known as “Bhamuria Number 1,” where Majee’s accountant Niraj Singh maintained digital records of transactions.

An ED official stated that a significant portion of the illegally mined coal was sold to the Shakambhari Group of companies.

ED claims Rs 2,742 crore proceeds generated

In a petition filed before the Calcutta High Court, the ED said its investigation traces back to a 2020 CBI FIR. 

Scrutiny of digital evidence seized by the Income-Tax Department revealed that between December 2017 and October 2020, proceeds of crime worth Rs 2,742.32 crore were generated.

The agency stated that payments were collected in cash at the syndicate’s Bhamuria No. 1 office. 

Of this amount, around Rs 20 crore was allegedly routed to I-PAC through illicit hawala channels.

How money allegedly reached I-PAC

The ED claims that Rs 20 crore was transferred from Kolkata to Goa via a complex hawala network to support I-PAC’s election-related activities during 2021–2022.

According to the agency, the money trail began with financier Jitender Mehta, a former director of Akasa Finance Limited. 

The funds allegedly moved through Mukesh Thakkar (alias Munna), then to Mukesh Patel of Rajesh Maganlal firm, and finally to Alpesh Patel, manager of R. Kantilal.

In Goa, the cash was allegedly handled by Sagar Kumar Patel and delivered to Akshay Kumar, an employee of Hertz and Pixelz and ASM Event Technology Private Limited. 

The ED claims these firms were hired by I-PAC for event management services.

The agency further alleged that Pratik Jain, co-founder and director of I-PAC, oversaw the company’s operations in Goa, where the funds were utilised.

Key accused in the case

Central agencies have arrested multiple individuals, and at least 41 people have been named in the CBI chargesheet so far. 

Anup Majee, director of Mark Enclave Pvt Ltd, remains the principal accused.

Former Bankura police station in-charge Ashok Kumar Mishra was arrested in April 2021. 

The ED claims he acted as a crucial facilitator, ensuring the safe passage of coal-laden trucks and the movement of cash under police protection.

Mishra reportedly told investigators that the transactions were carried out on the instructions of Vinay Mishra, an alleged associate of TMC MP Abhishek Banerjee, while Majee sourced the funds. 

The ED also flagged the alleged involvement of eight senior ECL managers. I-PAC director Pratik Jain is under investigation.

Political fallout intensifies

Following the ED raids, the case has snowballed into a high-voltage political confrontation. 

In its plea before the Calcutta High Court, the ED sought a CBI probe against Chief Minister Mamata Banerjee, who visited the I-PAC office and Pratik Jain’s residence during the searches.

The Trinamool Congress has filed a counter-plea seeking the return of items allegedly seized by the agency.

With West Bengal heading towards elections, political sparring has intensified. 

BJP leader Swapan Dasgupta questioned the Chief Minister’s actions, alleging she removed incriminating documents during the raid. 

The BJP accused Banerjee of engaging in “damage control” that pointed to a “deeper conspiracy.”

Opposition parties hit back, accusing the BJP of misusing central agencies. Congress leader Abhishek Singhvi said the ED was targeting political consultants due to a lack of credible evidence. 

Samajwadi Party chief Akhilesh Yadav claimed the raids showed the BJP’s fear of losing in Bengal.

Legal status of the case

The matter is being prosecuted under the Prevention of Money Laundering Act (PMLA), 2002, along with IPC sections 120B for criminal conspiracy and 409 for breach of trust.

The CBI filed its main chargesheet in July 2022, followed by supplementary chargesheets in May 2023 and July 2024. 

The ED has also submitted its prosecution complaint and a supplementary complaint.

The case is currently at the pre-charge argument stage before the court.